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The founders of a new colony, whatever Utopia of human virtue and happiness they might originally project, have invariably recognized it among their earliest practical necessities to allot a portion of the virgin soil as a cemetery, and another portion as the site of a prison.

What part of the plot does this excerpt reveal?

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This is part of the exposition; understanding that they have created a new society but that even in a place where they believed that life would be perfect and a sort of Utopia, they knew that they would eventually need prisons and cemeteries because inevitably people will die and start to revolt. 
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